In law passed in 2002 revamped the federal benefits available to workers who lost their jobs (or have less work) due to trade imports or exports, called Trade Adjustment Assistance (TAA).  Qualifying workers are now entitled to receive career counseling, up to 104 weeks of subsidized retraining (when first approved by the state), extended unemployment benefits of up to 52 weeks while enrolled in training, and a refundable federal income tax credit covering 65% of the cost of certain health insurance (including COBRA coverage).

To qualify for these benefits, a petition for certification of eligibility on behalf of a group of workers must be filed with the state’s Dislocated Worker Unit and  the U.S. Department of Labor (>> Click here for the petition).   A petition can be filed by as few as three affected workers, their union or employer, or a state One-Stop center. To qualify, layoffs must be related to imports of goods manufactured by the affected firm, or by a shift in overseas production of those goods.  In addition, in some circumstances, companies that were indirectly impacted because they supplied goods or services to trade-impacted businesses can be certified as so-called secondary firms.  Once the group of workers are certified as having lost their jobs due to trade imports or exports, then they can apply for the training and extended unemployment benefits (Trade Readjustment Allowances) provided under Trade Adjustment Assistance. 

The 2002 law added a new health insurance tax credit for trade certified workers (and those whose pensions are being assumed by the Pension Benefit Guaranty Corpoartion). The tax credit is not generally available to workers who are later covered under another form of health insurance. The new tax credit was available beginning December 2002, based on 1040 tax returns filed for 2002.For tax years beginning in 2003, affected individuals will receive a certificate from the IRS showing his or her eligibility for the tax credit, authorizing the Treasury Department to reimburse the insurer for up to 65% of the worker’s premium.  Details are still being worked out on how the refundable tax credit and health care reimbursement will operate.  (For more information about the health insurance tax credit, click here.)

Additional Resources:

Click here for a manual prepared by the National Employment Law Project and the United Auto Workers which provides all the information needed to help eligible workers access the Trade Adjusment  Assistance program.

More information on the Trade Adjustment Assistance program is also available by contacting your state’s Dislocated Worker Unit.